Tesla Resumes Showroom Search In India, May Join Hands With DLF: Report

Electric vehicle (EV) manufacturer Tesla is renewing its efforts to establish presence in the Indian market, according to sources familiar with the company's plans. The company has recommenced its search for showroom space in New Delhi, marking a likely revival of its previously halted investment strategy in the country, says a report by news agency Reuters.

This development coincides with Tesla's sister company Starlink's renewed interest in the Indian market, following recent spectrum allocation negotiations.

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Tesla May Join Hands With DLF

Tesla is currently in preliminary discussions with DLF, India's largest property developer, to secure retail and operational space in the capital region. The company is exploring locations such as the Avenue Mall in south Delhi and the Cyber Hub office complex in Gurugram, seeking approximately 3,000 to 5,000 square feet for a consumer experience centre and an additional three times that space for delivery and service operations.

The renewed interest follows Elon Musk's cancelled plans to visit India in April, which was originally intended to likely announce a $2-3 billion investment. The trip was postponed after Tesla implemented significant staff reductions amid declining sales.

Tesla Evaluating Market Entry

While the discussions are still considered exploratory, the company is evaluating multiple options for market entry. Uncertainty remains regarding Tesla's approach to import taxes, which currently stand as high as 100 per cent, or potential participation in India's new automotive policy that could reduce import duties to 15 per cent for certain electric vehicles.

India EV Market

The Indian government is actively working to attract international automakers, recognising the strategic importance of the electric vehicle market. Currently, EVs represent approximately 2 per cent of India's 4 million annual car sales, with governmental targets to increase this share to 30 per cent by 2030.

No definitive agreements have been reached, and both Tesla and DLF have not provided official comments on the ongoing discussions, the Reuters report added.